The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved investment for Transmission Component of Arun-3 Hydro Electric Project (Nepal portion) for an estimated cost of Rs 1,236.13 crore at June 2017 Price level, an official statement said.

The current approval is for investment approval of 400 kV D/C Diding (In Nepal) - Bathnaha (International Border) via Dhalkebar (In Nepal) Transmission Line of approximately 217 KM falling within the territory of Nepal to evacuate power from Arun-3 HEP (hydro electric project) in Nepal, according to the statement.

Employment generation of around 400 persons is envisaged in construction of transmission component of the project.

The project will provide surplus power to India's strengthening economic linkages with Nepal. The power from the project will be exported from Dhalkebar in Nepal to Muzaffarpur in India.

The Arun-3 Hydro Electric project (900 MW) is located on Arun River in Sankhuwasabha District of Eastern Nepal. The Run-of-River scheme envisages about 70 meter high concrete gravity dam and Head Race Tunnel (HRT) of 11.74 km with underground Power House, containing four generating units of 225 MW each on Left Bank.

The SJVN bagged the project through International Competitive Bidding. An MoU was signed between Nepal government and SJVN Limited for the project in March, 2008 for execution on Build Own Operate and Transfer (BOOT) basis for a period of 30 years, including five years of construction period. The Project Development Agreement (PDA) signed in November, 2014, which provides 21.9 per cent free power to Nepal for the entire concession period of 25 years.

The Cabinet in its meeting held in February, 2017 had approved the investment proposal for generation component of Arun-3 HEP (900 MW) in Nepal for an estimated cost of Rs 5,723.72 crore at May 2015 Price Level. KKS BAL

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